What nonsense some, who should know better, are talking about Francois Hollande’s proposed new taxes on 2nd home owners in France.
Let us calmly analyze those proposed:
1. Increase in Capital Gains Tax when you sell. This does not affect those buying to live here – as there is no Capital Gains Tax on a primary residence. It does not affect those who are not intending to sell. Obviously a “gains tax” is only applicable when and if you sell. The answer – be sure you love the home you choose and my advice is, of course, to use someone like me, Jackie Pressman, to help you with everything. See my website – www.FrenchRivieraPropertySearch.com Do not just go to an agent who will gladly sell you a property but not (ever in my experience) advise you on the purchase structure.
If/when you do sell – the increase in capital gains tax payable is proposed to be brought up to what the French pay – surely that is reasonable? Up until now other country members of the EU have had a tremendous advantage over the French, so he is only looking to equal it.
2. Increase in rental tax income. If you do not intend to rent there is no tax! I agree that if you have purchased in order to rent whilst you are not using personally, then this will increase your current income tax. This may push up the rental prices, and it may encourage “black” income, which is no good for France at all – and of course illegal for the owner to consider. However, here again the difference is exactly the same percentage as the French pay – and the French have always paid this higher difference. So why are other EU residents in an “uproar” about it?! The difference is the amount the French pay for social charges and those very welcome residents from other EU countries have the same advantages to the amazing French medical service, the French roads, etc. etc. when they come. HOWEVER I do agree that non-residents of France will never receive a pension here, nor will they ever get a “carte vitale” for free medical assistance – but this still needs to be approved by the EU authorities as being fair to non-French residents – let’s wait and see.
Whenever a buyer is considering a purchase for future gain, one place he can be more likely to achieve that is here on the French Riviera – so maybe that is the “quid-pro-quo”.
3. All property owners have the following 3 charges, whether they are French, foreign but resident in France, or simply visiting their 2nd home here. There is nothing new so why are some writers using this as a deterrent? It is surely the same with property purchases throughout the world – and all property owners want to be sure their property is properly managed, properly maintained and that the local council will attend promptly and efficiently to rubbish collection, lighting, clean streets, beautiful communal planting, etc. etc.
a) Property tax (called Taxe Fonciere)
b) Occupation tax (called Taxe d’Habitation) which includes items such as your TV licence.
c) Managing Agent charges if you live in a domain or in an apartment.
I have read so many scare-mongering articles recently about an additional charge to non-residents and I do not consider this is responsible journalism.
Finally, the UK Treasury is saying they will challenge any French proposal which breaches EU laws and discrimination rules. So let’s wait and see before getting our “knickers in a twist”.
Finally, consider the lifestyle when making an investment abroad ….
My friends and family in the UK are continually bemoaning the English weather, the English food, the English transport system, the English medical system, etc. etc. Read my blog: http://www.jackiepressman.com/2012/06/12/french-riviera-propert-an-investmentlifestyle-decision/